Boral receives final approval for Headwaters acquisition

Australian building materials supplier Boral has received final US approval for its US$2.6bn (AUD3.5bn) acquisition of US firm Headwaters Inc.

The US Federal Trade Commission approved the deal, which will result in Headwaters merging with Boral's existing US business to create a new division called Boral North America.

Boral expects that the transaction will close within two business days, and the Headwaters financial
results will be consolidated from this time.

Commenting on the deal, the company said: "Headwaters has a strong strategic fit with Boral’s existing US business, adding significant scale to Boral’s US footprint through complementary businesses with improved geographic reach and ability to compete across North America.

"The acquisition significantly grows Boral’s fly ash business, expands its light building products offering, and doubles the size of Boral’s roofing and manufactured stone positions."

The deal is being funded via a AUD2.1bn equity raise, which was completed in December 2016, together with US$0.8bn of debt.